It was quite a roller coaster ride during the week for the market. Nifty started the week on a rough note when it erased all the gains that it had recorded in the previous session. This negative sentiment persisted which resulted in it testing the low of 5401 on Wednesday. On Thursday, it moved sideways in a small range but its movement confirmed some semblance of downside support. The Nifty finally ended the week on a promising note at 5486 down 58 points. We have deciphered the following points from the last week's yo - yoing move of the Nifty. 1) Pace of the declines is slower compared to the rally. 2) Volumes are languishing at extremely low levels. 3) Emergence of "Harami" pattern in Nifty futures which is a pattern for a trend change in technical parlance. 4) Technical indicators and oscillators are now exhibiting positive divergence. All these factors only hint of minimal downsides going ahead. It's factual that technical indicators can remain oversold for long periods however the odds for a sustainable bounce back seems a high possibility in the near term. Nifty continues to be the guiding big brother for the Mid Cap Index. Any change in the structure of benchmark should reflect in the changing technicals of Midcap Index as well.

On the whole, the market may appear split down the middle but conditions are ripe for a technical breakout. So be on guard !

Commodities: Aluminium continues to be in a downtrend. Zinc is in a trading range and is a wait and watch. Copper pullback rally may continue . In bullion, Gold & Silver remains in a consolidation phase. Crude is a wait and watch till $101.00 is breached on the upside.

Currencies: For USD/INR, 45.40 remains a stiff area of resistance. Euro/Dollar could face stiff resistance at 1.4350 - 1.4425. Dollar/Yen may face fair resistance closer to 82.75 level . DXY can continue to see further upsides.